Kraken Eyes $20B Valuation in Pre-IPO Funding Round: Report

Kraken is reportedly in advanced talks to raise between $200 million and $300 million from a strategic investor in a move that could value the crypto exchange at $20 billion ahead of a planned public listing, according to a Bloomberg report on Friday.

Key Takeaways:

• Kraken is seeking $200–$300 million in new funding, potentially raising its valuation to $20 billion ahead of a 2026 IPO.
• The exchange is expanding aggressively, with acquisitions, new leadership, and over $1.5 billion in 2024 revenue.
• Kraken is stepping up its political involvement, pledging $2 million to pro-crypto PACs supporting industry-aligned candidates.

The funding, while not yet finalized, follows a separate $500 million round quietly completed at a $15 billion valuation, as reported by Fortune.

The capital raise signals Kraken’s push to position itself among the top-tier crypto firms preparing to go public.

Kraken Targets 2026 IPO Amid Expansion Plans

The San Francisco-based exchange, one of the largest in the US by volume, is aiming for an IPO as early as 2026.

Bloomberg noted that Kraken is working with Morgan Stanley and Goldman Sachs Group to lead the offering.

Kraken has also been aggressively expanding. In March, it announced plans to acquire derivatives platform NinjaTrader in a $1.5 billion deal.

The firm restructured in late 2024, appointing Tribe Capital’s Arjun Sethi as co-CEO, and began publishing financials, revealing $1.5 billion in revenue for 2024 and $472 million in Q1 2025.

This week, Kraken also pledged $2 million to pro-Trump crypto political action committees (PACs) in 2025, indicating the growing influence of digital asset firms in Washington.

In a post on X, Co-CEO of Kraken Arjun Sethi noted that the exchange will donate $1 million to the Digital Freedom Fund (DFF) and another $1 million to venture firm Andreessen Horowitz’s advocacy initiative, the America First Digital (AFD).

The decision, he said, reflects a broader strategy by crypto companies to shape regulatory frameworks and support candidates who back industry growth.

Notably, Kraken’s latest pledge adds to its earlier contributions to political action committees. In January 2024, its parent company, Payward Inc., donated $750,000 to Fairshake PAC.

Crypto IPOs Gain Momentum

Last week, BitGo officially filed for an initial public offering, becoming the first dedicated crypto custodian to pursue a listing on a US stock exchange.

BitGo’s IPO filing came amid renewed momentum for crypto-related public offerings.

The digital asset space has seen several notable public listings in 2025. Stablecoin issuer Circle made a splash with its IPO in June, surging more than sevenfold since going public.

Online trading platform Etoro, which offers crypto trading among its services, debuted in May.

In addition, Galaxy Digital, led by Mike Novogratz, moved its listing from the Toronto Stock Exchange to Nasdaq earlier this year.

Gemini, the exchange founded by the Winklevoss twins, filed confidentially for a U.S. IPO in June, signaling strong market confidence in crypto exchanges going public.

More recently, Figure Technology Solutions Inc., a blockchain-focused lending platform, raised $787.5 million in its initial public offering.

The San Francisco-based company, alongside key backers including Ribbit Capital, sold 31.5 million shares at $25 apiece, valuing the firm at roughly $5.3 billion.

Originally targeting a lower range, Figure increased both the share count and price just days before the listing, signaling strong investor demand.

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